HMRC New Debt Recovery Powers

HMRC to be given powers to collect tax debts from salary; not just bank accounts?

The government is proposing to introduce new legislation that will enable HMRC to collect tax debts from taxpayers' salaries under PAYE.

The changes would affect those who owe HMRC money and are earning over £30,000. Basically, a new graduated scale applies for the 2015-16 tax year that increases the amount of debt that can be recovered from those on higher incomes.

HMRC state that “Debtors will be notified in advance of the amounts which will be deducted from their income from April 2015 onwards.”  But that an “over-riding limit that will prevent employers from deducting more than 50% of an employee’s pay, will apply from 6 April 2015.”

If you would like to let us know your views on these proposals, please email us using the heading "HMRC direct recovery powers"